US will not repeat the great depression in 1929

After the financial crisis struck in 1929, the 10 years of great depression after that has severely affected the social livelihood of people. Now, the financial crisis has appeared again and is spreading by the day. Some economists think that the financial crisis this time will not cause and end with a great depression. One such economist, 阮思余, provided his thoughts.

阮思余 thinks that the most severe result of a great depression like the 1920s to 1930s will not happen because of 3 reasons.

Reason 1
The great depression provided good teaching materials for the current financial crisis. The lessons and experiences learned from the great depression will provide a model to help tackle the current financial crisis. The main points are strengthening of the budget balances, the president's swift and positive actions/policies, ie, coming out with strong and effective measures to encourage and restore confidence to people and keeping constant communication with the public in order to step up the recovery of the economy.

Reason 2
Global cooperation is the best choice to tackle the current financial crisis. The in-depth development of globalization has forced countries to strengthen economic cooperation, at the same time, countries have to face together to tackle the current financial crisis. After all, no one can escape unhurt from the current financial crisis. This can also be put into another point of view that globalization has tangled the various countries on the earth together in a web, when one is affected, the rest will also be affected. The financial crisis spreading from US now needs global cooperation in order to contain and resolve it. From the eager and positive responses from various country's top governance to the coming Washington Global Financial Summit to be held on the 15 November is the best proof.

Reason 3
The 'switching' of the US political parties provides the best time to tackle the current financial crisis. Now, as democrat Obama is about to take over the US presidency, his idea of strengthening the government with structured supervision will let the US government have better control comparing to the republican's idea of a free market.

阮思余 thinks that with the global cooperation and the change of the US political parties, what can be expected is that the US economy will gradually move towards an orderly and positive transition phase to recovery.